Riot Blockchain Inc (NASDAQ:RIOT) announced lower-than-expected second-quarter earnings while also revealing the scope of the US Securities and Exchange Commission’s inquiry into the company.
The blockchain company reported a net loss of US$1.81 per share on revenue of US$2.79mln compared with a net loss of US$0.26 per share on revenue of US$24,174 in the previous year’s second quarter.
The Colorado-based company fell below Wall Street revenue estimates of US$4.2mln.
The cryptocurrency company mined 348 Bitcoins and 318 Litecoins for the quarter.
READ: Riot Blockchain subpoenaed by SEC; shares fall
Riot Blockchain has been on the SEC’s radar for a few months now. The company was originally named Bioptix and operated as a biotech company before changing its name and business model last year.
The SEC began taking a closer look at companies that undergo this change in an attempt to combat shady initial coin offerings.
The company was subpoenaed in April for information regarding its financial statements. The company’s recent filing revealed that the SEC is still on the case, requesting additional information about its registration statements and its acquisition of a minority stake in Canadian crypto exchange Coinsquare.
“The company is engaged in conversations with the staff of the Division of Enforcement, Division of Investment Management and Division of Corporation Finance about their concerns and intends to cooperate fully with the examination,” said Riot Blockchain in its filing regarding the SEC subpoena.
Shares of Riot Blockchain fell nearly 14% to US$5.75 in Wednesday afternoon trading.